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RiCoal to build world-scale Coal-To-Olefin complex in Russia

RiCoal selected Rostov for its Petrochemical complex

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe Russian joint venture RiCoal Chemical Coal Plant (RiCoal) is planning to build a world-scale Coal-to-Olefin and petrochemical complex in Rostov-on-Don in the south of Russia.

Estimated to require $2.5 billion capital expenditure, RiCoal selected Rostov-on-Don location because of available coal and natural gas available in the region and the easy access to export markets for the petrochemical production.

Russia_RiCoal_Rostov_Petrochemical_Complex_MapRiCoal is a joint venture of local partners including:

 – Gefest-Rostov producing polymers for oil and gas anti-corrosion agents

 – Spetzmontazhproekt-6 is a contractor specialized in construction of industrial buildings and large infrastructures

 – Stroitelno-montazhny poezd-162 is an engineering company based in Bataisk

 – Krosna Bank is a registered Russian bank.

Because of the shortage of petrochemical products in the region, the RiCoal partners identified the opportunity to take advantage of the huge local reserves of coal in the Donbass Basin and of the natural gas available all over between the Azov Sea, the Black Sea and the Caspian Sea to work on this Coal-To-Olefin and petrochemical complex.

RiCoal to combine Coal-To-Methanol and Methanol-To-Olefin processes in Rostov petrochemical complex

The process of the project is split in two stages:

 – Stage 1 will use natural gas and coal to produce syngas to be then converted into methanol, the optimized process to convert Coal-To Methanol (CTO)

 – Stage 2 will use Methanol-To-Olefins (MTO) technologies to produce ethylene, propylene and their derivatives into polyethylene and polypropylene.

RiCoal_WorleyParsons_Rostov_Project_ProcessesThe Don River is navigable all year round facilitating the export toward Central Europe, Kazakhstan, Turkey or Ukraine.

The RiCoal project should consume:

 – 1.5 million tons per year (t/y) of coal

 – 1.6 billion cubic meters per year (cm/y) of natural gas.

RiCoal signed an agreement with Gazprom for the natural gas supply and other contracts are in discussion to secure feedstock.

The RiCoal project will require to build:

 – 1,730 t/y coal-to-methanol plant

 – 333,000 t/y polypropylene facility

 – 269,000 t/y polyethylene unit

 – 122,000 t/y acid acetic plant

 – 100,000 t/y acetic anhydride

 – 1.6 billion cm/y gas compression station

 – 40 kilometers water supply pipeline

 – 18 kilometers natural gas inlet pipeline

 – 10 kilometers electrical power lines

 – 12 kilometers railways connection

In the first phase, RiCoal will use the existing export terminals,and in a second phase will build its own export terminal.

Regarding the financing of the infrastructures, RiCoal is in discussion with the Rostov Region Government to provide the financing considering that the RiCoal Coal-To-Olefin project should create more than one thousand permanent jobs in the region. 

WorleyParsons completed RiCoal feasibility study

On the first quarter 2013, WorleyParsons completed the feasibility study and the front end engineering and design (FEED) of the RiCoal project.

As a result the licensors and the suppliers of large equipment have been pre-qualified, some have already been selected:

RiCoal_Coal-To-Olefin_Process_Flow_Diagram – Coal equipment: Russia and FAM Germany

 – Air Separation: Air Products from UK

 – Natural gas steam reforming: Haldor Topsoe from Denmark

 – Coal gasification: GE from USA or Siemens from Germany

 – Methanol manufacturing: Haldor Topsoe from Denmark

 – Methanol to Olefins: UOP from USA

 – Polyethylene and Polypropylene: Ineos from USA and Basf from Germany

 – Power generation: GE from USA and Siemens from Germany

 – Power boilers and other equipment: Foster Wheeler from Russia and Finland

To support the project, RiCoal is looking for strategic partners in Russia and overseas to provide financial equities and technological expertise in similar projects.

This fund raising exercise should be completed by mid 2013.

Then the engineering, procurement and construction (EPC) phase should start on the second half of 2013.

WorleyParsons and SNC Lavalin are among the pre-qualified companies to be invited to bid, but RiCoal is currently expanding the list with US based engineering companies.

With a construction to be completed at the end of 2015, the RiCoal Coal-To-Olefin project should see the first shipments to take place on the first half 2016.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer


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